Rio Tinto and BHP have agreed to collaborate on the extraction of 200Mt of iron ore at their Yandicoogina and Yandi operations in Pilbara, Australia.
The two companies have signed two non-binding Memoranda of Understanding (MoUs) to explore the potential for:
- Collaboration on the development of Rio Tinto’s Wunbye deposit
- BHP to supply its Yandi Lower Channel Deposit ore to Rio Tinto for processing at its existing wet plants under agreed commercial terms
Matthew Holcz, iron ore chief executive at Rio Tinto, said: “By working smarter, we can better leverage existing infrastructure to unlock additional production with minimal capital requirements.
“Together we will extend the life of these operations, create additional value, and further support Western Australian jobs and local communities.”
The project builds on a 2023 agreement between Rio Tinto and BHP to mine the Mungadoo Pillar, which enabled mining of ore from the shared tenure boundary that was previously inaccessible.
Tim Day, Western Australia iron ore asset president at BHP, added: “This is a clear example of productivity in action - unlocking new opportunities by making the most of our existing resources.
“By sharing our expertise and infrastructure, we will create new value and deliver benefits to our people, partners, customers and communities."
Subject to a final investment decision, the first ore from both deposits is expected early next decade.
